Thiruvananthapuram: Finance Minister K N Balagopal on Friday presented the state budget in the Legislative Assembly, which saw him making some major announcements, including a hike in liquor price, vehicle tax and electricity tariff.
While the building tax was revised, a social security cess was introduced on liquor and fuel.
As expected, the fair value of land has been hiked by 20 per cent. Rents of properties will now be based on the fair value of the land.
During his introductory speech, Balagopal said the state bravely overcame challenges like Covid-19 and Ockhi. "Many with vested interests said Kerala is a lost cause. However, the state has been on an upward trajectory in terms of growth. Domestic production increased," he said.
The budget projects a revenue receipt of Rs 1.35 lakh crore and a revenue expenditure of Rs 1.76 lakh crore. Revenue deficits of Rs 23,942 crore (2.1 per cent of GSDP). Fiscal deficit of Rs 39,662 crore (3.5 per cent of GSDP).
Balagopal also used the dais to criticise the Central government's lackadaisical approach towards the state in approving funds or loans. "The state is not staring at a debt trap. Kerala has the ability to raise more loans," said the minister.
However, Balagopal said the state will experience a financial crunch this year.
Listed below are the key announcements made in the budget:
Court fee stamp duty hike: A court fee of one per cent will be fixed in defamation cases.
Revised building tax: Separate property tax if an individual owns more than one house. Special tax on vacant buildings.
Additional revenue of Rs 1,000 crore is expected from local bodies.
Electricity charges have been hiked: Electricity duty for commercial and industrial sectors has been increased to 5 per cent.
Motorcycle tax hike: A 2 per cent additional tax will be levied on motorcycles priced up to Rs 2 lakh.
Increase in cess for vehicles: Till Rs 5 lakh - 1% increase; Rs 5 lakh-Rs 15 lakh: 2% increase;
Rs 20 lakh-Rs 30 lakh: 1% increase; above Rs 30 lakh: 1% increase.
The state expects to earn an additional revenue of Rs 340 crore through this.
Liquor prices increased; social security cess introduced on alcohol.
Flat prices to increase; stamp duty for flats and apartments has been increased by 2 per cent.
As expected, the fair value of land has been increased by 20 per cent.
The government has allocated Rs 2,000 crore to deal with inflation.
Personal income has increased; to go up to Rs 85,000 crore this year.
The state allocated Rs 600 crore as rubber subsidy
Government departments should prepare annual reports. IMG has been entrusted to supervise the same.
The government has earmarked Rs 100 crore to expand the Make in Kerala project. During the project period, Rs 1,000 crore will be allocated for the scheme.
Rs 1,000 crore has been allocated to acquire land for ring road project in the capital.
Rs 20 crore has been set aside for a green hydrogen hub.
Rs 50 crore for work near home schemes; Rs 10 crore for work from holiday homes in tourist destinations.
A corpus fund of Rs 15 crore has been set up to reduce airfares.
The minimum support price of coconut was increased by Rs 2 to Rs 34.
Rs 80 crore has been allocated to eradicate extreme poverty in the state.
The agricultural sector was given Rs 971 crore; Rs 95 crore for paddy cultivation.
Rs 50 crore was announced to prevent wild animal menace in the state.
Kudumbashree was allocated Rs 260 crore for their activities.
The LIFE Mission project was given Rs 1,436 crore
Rs 30 crore was allocated for the Sabarimala Master Plan and an additional Rs 10 crore for the Erumeli Master Plan.